Citizens of Argentina have found a safe haven in stablecoins as the prices of USDT in Argentinian pesos surged by significant numbers following the resignation of Economy Minister Martin Guzman.
“With the deep conviction and confidence in my vision of the path that Argentina should follow, I will continue working and acting for a fairer, freer, and more sovereign Homeland,” Guzman said in a Twitter post Sunday while revealing his resignation letter to the public. No replacement has been named for Guzman.
After his Twitter post, the price of USDT in Argentine pesos at crypto exchanges rose significantly, and according to CriptoYa, as of 12:37 am ET, 1 USDT was sold for 271 pesos on Binance while on ByBit, it was sold for 272 pesos. For Huobi users, the price was 310 pesos while for KuCoin users, the price of 1 USDT was 266 pesos.
Interestingly, 1 US dollar stands for 125.50 Argentine pesos, according to data from Google. Since USDT is pegged to the USD, it should be worth 125.5 Argentine pesos but the surge in prices across exchanges suggests that there is a huge demand for USDT in the country.
Argentina is ranked 10th in the crypto adoption index published by Chainalysis after inflation crushed the nation’s fiat currency. Crypto exchange Buenbit gave a statement to CoinDesk in May stating that DAI, a stablecoin by MakerDAO, usage in the nation surged significantly.
“The adoption of DAI became popular because, being a stablecoin and having a quotation linked to the U.S. dollar, many Argentines have decided to acquire it as an indirect form of dollarization,” said Buenbit.